Ladies and Gentlemen, the first paragraph of this paper says it all. We are in a Panic Cycle, as Martin calls it, a cycle in which many cycles converge and influence each other. Mr. Armstrong states that his recent prediction of gold at $5,000 is conservative under these circumstances. Groovygirl agrees. He makes some calculations based on US national and global gold reserves and comes up with $53,000 and $15,000. So, he asks, why are we trading at $1200 right now? Time and perception is his response. As soon as everyone, not just Martin, realizes the situation we are in and there is no turning back, gold and silver will climb higher than anyone today can imagine.

As Martin states, the bankers could accelerate a trend, and make money off that info, but they can not change a bear market into a bull market or visa versa. Enough said, all this talk about gold in a bubble is just silly. We are in a 20 year bull market in precious metals and commodities and a bear market in stocks. Martin goes into detail about other market cycles happening now.

Martin says, beware of New York bankers baring US treasury bonds. Bankers will implode the US, just like they imploded Greece, Hungary, Ireland, etc. We will not be left out. Beware. All holders of US debt will be wiped out. The US is heading down the path of collapse. It is a matter of time.

groovygirl says: just keep in mind that gold at $50,000 means a complete breakdown of the global financial system. Gold is your insurance during that collapse.

Side musing: here is more info via zerohedge on the gold market moves today. Currently at $1385. Click here.

November 27, 2010

The United States is in the middle of a bear market in stocks, which began in 2000, when adjusted for inflation. Click here for a post via zerohedge.

Your stocks are not regaining value, and they will not regain value in real terms, real purchasing power. This is the winter phase of the K-wave cycle. Our last winter cycle was the 1930’s Depression. All asset prices and expenses were lower in dollars because the dollar was still tied to gold. This time around, we will reach new highs in dollars, but the dollar is being systemically devalued. The end result is the same, as this chart shows us. Stocks are declining in real value. This is a major characteristic of the winter cycle.

Fortunately, we are in a precious metals bull market during the same period, so you have somewhere to put your money.

November 26, 2010

Groovygirl has mentioned a few articles over the last 6 months that referred to Bank of America being secretly infused with money just to meet daily business activities. They have major cash flow problems.

It is still undetermined whether the Fed/Gov is setting up Bank of America to be the fall guy, filled with toxic mortgages. That remains to be seen. It could just be Bank of America is insolvent and requires too much Fed money to continue day-to-day activities until it can regain any lost ground in its investments. Either way, it is insolvent, long-term for sure, and since it has been taking Fed money the last six months, short-term as well.

It is time to issue a formal warning, get out of Bank of America if you haven’t already. Make sure your broker doesn’t hold money in it, you don’t hold money in it, and your 401k, IRA doesn’t hold money in it. And of course, no stock holdings in this company. If your mortgage is with Bank of America, I wouldn’t worry about foreclosure in the near future.

There is more and more mounting evidence of another close call coming to the American banking system. Similar to 2008, when the entire system almost came crashing down. Do not be lulled into a false sense of security, the global economic picture is worse, not better, than 2008. The probability that a banking crisis will cause major losses is very high, even if another complete collapse is avoided. Even a controlled and systemic take down by the Fed of Bank of America (filled with toxic debt), will not avoid another major economic downturn and major economic losses for investors. Did selling/imploding Countrywide solve the toxic mortgage problem? No, it didn’t. It hid it for a while.

Make sure you are insulated as much as possible from a systemic banking collapse and another economic downturn.

November 24, 2010

Here is a great post by Chris Martenson. Click here. There is a part one, two and three.

Peak oil is here. So, why should you care?

There can be no recovery long-term if energy will be more and more expensive in the future.

You must start to prepare now about how you will handle the increase expense in energy, because the government has no plan to address this on a societal level. You will have to conserve energy and equip your home/office with alternative energy resources. Both will be needed.

November 23, 2010

Gold and silver may get slammed today or tomorrow since today is options expiration day. However, review Jesse’s chart. We are right on schedule, ladies and gentlemen.

JP Morgan’s short silver position has and will continue fight hard, but they have not modified the short-term trend at all.

Don’t panic. Neither the short-term nor the long-term trend has been broken in silver or gold, but you would never know it to listen to major media. This is an opportunity to buy more silver if you wish.

Short term: Gold is going to 1455, silver is on its way to 30 and beyond.

Check out Harvey Organ’s site regularly to get the real scoop on what is happening in the precious metals market. Harvey’s analysis strips away the paper shorts which tells you the real story. The real story is there is a war going on between paper and physical behind the scenes.

Side musing: read Harvey’s post for November 22, 2010. There is a link to an interesting article about the BIS holding back money.

November 22, 2010

Groovygirl thought this was an interesting twist to the airport body scanner issue. Click here. Read the entire post as he goes into detail about the real health effects of these scanners, especially for pilots, TSA workers (they better get a union soon), and frequent flyers.

Quote from Lira’s post:

In other words, Michael Chertoff is not some kindly old éminence gris, looking after what’s best for the United States out of his boundless patriotism—

No: He is the paid spokesman for the manufacturer of the airport body scanners. And he stands to profit from the implementation of these airport body scanners. Profit directly.

Even back when he was in office as Secretary of Homeland Security, Chertoff kept pushing the TSA to adopt full body scans—even though there were a host of problems with the policy:

• Body scanners are not inherently superior to other methods of preventing unlawful items from being taken on board an airplane. The very fact that an individual can (currently) “opt out” of a body scan, and instead be manually patted down proves that scanners do not have an inherent advantage over low-tech solutions.

• Body scanners are extraordinarily expensive—$150,000 each—a cost which might be better applied to hiring more TSA workers, and thereby increasing the flow-rate of passengers through security, which currently has reached bottle-neck proportions.

• Body scanners are an obvious breach of civil liberties—a clear violation of the Fourth Amendment (unlawful search and seizure) and the rule of probable cause . . . unless we are going to redefine “probable cause” as meaning all airplane passengers by definition are likely engaged in criminal activity, and therefore there is probable cause to essentially strip-search each and every one of them.

Groovygirl also read somewhere that Middle Eastern women were not getting scanned or groped because of religious/cultural reasons. Doesn’t that kind of defeat part of the purpose?

Boycott the TSA and all airlines. It may surprise people to learn that you can actually drive, ride a bus or a train for the same cost and time involved now a days. It takes so long to drive, park, check bags, wait, go through scanners, wait, board, be delayed, etc. at the airport. If you are going less than 800-900 miles, it is usually a wash in time and money. Or you can decide just not to travel.

Update: your congresscritters are invested in the companies that make scanners. Click here. I think this is called fraud, insider trading, illegal in some circles.

Groovygirl was very opposed to the Congress’ bid to try to retro all MERS based mortgages as legal. Groovygirl emailed her congresscritter immediately to vote no. Homeowners are safe for the moment, but I am sure they will slip it into some bill later.

However, in looking at this chart, it is clear to groovygirl that making the MERS system legal in all 50 states will not solve all the mortgage problems, only the fraud charges of the court system.

The mortgage system and all its leverage is done, dead, and collapsing. This system can not be sustained and what is currently on the books has to be redone. This chart makes it very clear. This system is too complicated. Many people tried to hustle some very sandy plays because of the complication factor.

Your pension funds and mutual funds are full of this mortgage crap.

What a mess…for the homeowners, for the sellers, for the buyers, for the courts, for the banks, for the title companies, for the investors, for all the pension fund recipients and for the government.